Lenovo in record quarterly profit, revenue growth

Lenovo Chairman and Chief Executive Officer, Yuanqing Yang

by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) LENOVO has attained record fiscal first quarter profit and revenue as it makes the most of opportunities created by accelerated digitalisation, intelligent transformation and information technology upgrades in devices, infrastructure and applications.

The Chinese firm saw significant Q1 revenue growth (38 percent year-on-year to US$1,18 billion) across three key segments of SSG (support services, managed services/as-a-Service, vertical solutions) with an operating margin of 22 percent.

This is much higher than the traditional hardware businesses.

The company’s performance delivered significant year-on-year profitability improvements, with pre-tax income almost doubling to $650 million (up 96 percent), and net income also more than doubled (up 119 percent), as net income margin reached 2,8 percent, the highest in many years.

First quarter Group revenue continued hyper-growth to $16,9 billion, up 27 percent year-on-year.

Yuanqing Yang, Lenovo Chairman and Chief Executive Officer, said the accelerated digital and intelligent transformation created significant market opportunities globally.

He said Lenovo was successfully seizing these as it transformed from a device company to a services and solutions provider.

“The proof is in our performance – this quarter alone we’ve doubled profitability year-on-year while net income margin reached the highest in many years.”

Lenovo will continue to increase research and development (R&D) investment, aiming to double it over the next three years.

“We will further improve our operational excellence, and we remain committed to green innovation and corporate citizenship to achieve long-term sustainable profitability increases,” Yang said.

– CAJ News

 

 

 

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